Insurer’s Perspective

By Alistair Dunsmuir
July 28, 2011 17:13

The areas of security and insurance are of course intrinsically linked. Often it feels like it is insurers that drive golf clubs towards improving their security as a condition of the policy but rarely are they insisting on anything that is other than good risk management based on their similar experiences throughout the country. A good insurance surveyor will look to work with the club to improve what is already in place without the need for radical change. In fact in my experience most clubs have made consistent improvements over recent years, with or without the involvement of insurance surveyors and have reached a high standard of physical security.

Some of the key areas that we have to focus on at Kerry London are as follows:

False alarms – this is a difficult area for golf clubs due to the different buildings involved and the often rural aspect. Withdrawal of police response is commonplace. It is important that clubs notify their broker/insurer when response is withdrawn as often a fully active alarm is a condition of the policy and failure to notify could result in a breach of this condition. Insurers will normally look to work with the club to maintain cover and advise them on their risk whilst they negotiate to have full cover reinstated.

Minimum standards of security – most insurance policies have similar minimum standards that are a condition of the policy. Again it is important that these are adhered to as there is a risk that policies could be voided based on this fundamental condition. It is noticeable in the current economic environment that insurers will be less lenient than they may have been in the past given that premiums have reduced so significantly and margins are thin at best.

The conditions on the Kerry London policy relate to the requirement for 5 lever mortice deadlocks for all final exit doors of which there can be several in a club. Also any accessible windows require locks where practical. If in doubt it is important to discuss with us. Our insurers Ageas survey all new risks and insurers will work with you wherever possible to find an acceptable solution if the minimum standards are not practical for some reason.

Linked closely to security is the continual problem of arson which impacts on clubs from time to time. Again the rural and sometimes isolated nature of clubs has led to issues with arson and there are a number of actions a club can take to hopefully prevent occurrence or at least reduce the impact of such an event. For example, keeping combustible waste a good distance (10 meters) from the buildings, ideally in a covered store, will certainly improve the risk of spread of fire. This is recognised as a positive risk management attribute by our underwriters. In addition sensor lighting, whilst it is an obvious factor, is effective as a deterrent for young vandals.

In may seem that each brush with insurance costs your club money. However the good news is that KL offer beneficial premium rating for positive risk management attributes of a club which can give up to 20% discount. Its not all bad news!